The 'Dual Government' recommended by Lord Clive provided that the

The 'Dual Government' system, introduced by Robert Clive in 1765 following the Treaty of Allahabad, divided the administration of Bengal into two distinct spheres: Diwani and Nizamat [1][t1]. Under this arrangement, the East India Company acquired the Diwani rights, giving them direct control over fiscal matters and revenue collection [c1][c5]. Conversely, the Nizamat functions, which included the administration of criminal justice and police, were nominally left to the Nawab and his officials [t1][t7]. However, the Company exercised indirect control over the Nizamat by nominating the Deputy Subahdar [c1][c2]. This system created a scenario of 'power without responsibility' for the Company, as they managed the finances while the Indian rulers remained responsible for the peace and order of the province without having the financial resources to maintain it [c5][t7].

Sources

1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 5: Expansion and Consolidation of British Power in India > Dual Government in Bengal (1765-72) > p. 93